The RBI does not want to end up in a situation where it does something without actually understanding the likely impact or would always be desiring to be in a position where it can manage the fallout, Sankar said.
He said 50,000 users and 5,000 merchants are transacting through eight banks at present, and another five lenders are set to join soon.
The pilot project started on December 1 has witnessed 7.70 lakh transactions, and is now being carried out in five cities, he said.
There are plans to add nine more cities to the list, Sankar said, reiterating that the same will be gradual.
India is among the few nations among the 100 countries mulling to introduce digital versions of fiat currencies called the CBDCs.
Before the retail CBDC, the RBI had started the wholesale CBDC pilot last year.